§ Mr. Barry GardinerTo ask the Secretary of State for Education and Skills what assessment his Department has made of the effect on the UK skills base of those on low incomes choosing not to seek new employment because of concerns over short term cash flow problems. [129862]
§ Mr Ivan LewisThis Department has not made an assessment of the effect on the skills base if those on low incomes choose not to seek new employment. The recent Skills Strategy White Paper sets out a number of measures aimed at ensuring individuals have the skills they need to be employable, and work productively in a flexible labour market. In addition, the Department for Work and Pensions is committed to making work pay for all those who are able to work, and to supporting households, including low-income households, in sustaining employment.
The Department for Work and Pensions believe that most people moving from one job to another will be able to manage until they receive payment from their new job, as wages are paid in arrears. For those in receipt of Working Tax Credit, continuity of payment is maintained when people move from one job to another, as long as the gap between jobs is no more than 7 days. The new Working Tax Credit has been extended to people aged 25 and over without children. If people receive the Child Tax Credit, this continues to be paid direct to the main carer throughout any changes in employment. People in low paid employment may also be entitled to Housing Benefit and Council Tax Benefit.
People who are unable to manage whilst waiting for payment of wages, leading to a serious risk to their own health or safety or that of their family, may be able to get an interest free Crisis Loan. Repayment of a Crisis Loan does not start until the period of crisis is over and the rate of repayment takes account of a person's income and other commitments to avoid hardship.